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Pakistan Debt to China: Now Pakistan speaking the language of America, sought concession from China on a loan of Rs 16 thousand crore

Islamabad: These days Pakistan is speaking the language of America except its evergreen friend China. The Pakistani Finance Minister has sought concession from China on the old debt at the behest of America. To meet the new loan requirements under the International Monetary Fund program, Pakistan needs a guarantee on the old debt. Pakistan has to pay 2 billion dollars (Rs 1,63,27 crore) to China in March 2023. For this, Pakistan has sought the support of the Chinese ambassador to re-roll over the amount of $2 billion deposited in the State Administration of Foreign Exchange (SAFE).

Pakistan appeals to China at the behest of America
As per the IMF’s condition, Pakistan will have to secure a rollover of $2 billion in SAFE deposits for the current financial year. Pakistan’s appeal came after an appeal by US Secretary of State Antony Blinken, in which he had asked the Shahbaz government to seek debt relief from its close ally China. Blinken made the remarks after talks with Foreign Minister Bilawal Bhutto Zardari in Washington on 16 September. In such a situation, at the behest of America, Pakistan has demanded more time from China to repay the old debt.

Chinese Ambassador meets Pakistani Finance Minister
According to an official statement from the Ministry of Finance, Chinese Ambassador Nong Rong met Finance Minister Ishaq Dar at the Pakistani Finance Department on Friday, The News reported. He apprised the Ambassador of the damage caused by the unprecedented floods in Pakistan affecting infrastructure, agriculture, life and properties and the cost to the economy at large. The Pakistani finance minister praised the Chinese leadership for re-funding the $2.24 billion syndicate facility. Along with this, he also sought help in the rollover of deposits of $2 billion.

Record fall in Pakistani forex reserves
Pakistan is facing severe financial crisis these days. Pakistan’s foreign exchange reserves have fallen to record levels. According to data released by the State Bank of Pakistan on Thursday, forex reserves had fallen to a record low of $8,005.9 million on September 23. This amount is $341 million less than it was on September 16. The country’s overall liquid forex reserves, including net reserves held by banks other than SBP, are only $13,761.9 million.

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